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Grafica Inc.

– Winning the New Jersey Lottery
By Group 7

New Jersey Known for its integrated marketing approach to customer relationship management and its expertise in using digital technologies in marketing communications and advertising • Employed more than 50 personnel and served a number of marquee accounts including AT&T. PSE&G (Public Service Electric & Gas). Allied Signal.Graphica Inc.
• • • • Started by Deb Taeschler in 1986 Full service advertising agency by 1998 Located in Chester. Horizon Blue Cross/Blue Shield. Coldwell Banker Commercial. Novartis. and Hasbro
. Lucent Technologies.

1969 • By 1998.6 billion • Fifty-one percent of Lottery sales went back to the players in prizes • Net proceeds from the sale of Lottery tickets also benefited various state education programs and institutions • Despite this public awareness about their +ve impact low • Suffered from an additional image problem of being a game for the poor • Still 80% of adult New Jersey state residents had purchased a lottery ticket in the last 12months
.The New Jersey Lottery
• Created by an amendment to the state’s constitution on November 11. annual sales totaled approximately $1.

rather. Jersey Cash 5 – This relatively new game was structured such that there was no top prize. a player had to select a six-digit number. The game had a pari-mutuel style payout. With the exception of billboard advertising.Products
• Pick-6 Lotto – Pick-6 Lotto was New Jersey’s most high-profile and largest jackpot lottery game. or 4 numbers with 63 ways to win
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. winning numbers were drawn twice weekly. (The Lottery had plans for 40 game introductions in 1998. Pick-3/4 – To win. The jackpot rolled over when there was no winner. and dozens of new games were launched and promoted each year. 3.) What all of these games had in common was that they provided players an opportunity to win instantly by scratching off a covered area on the game ticket. winning numbers were selected daily. This product had not been promoted in recent years. To win. Pick-6 had not been promoted in over two years. the prize was shared equally among winners. the Lottery had more than a dozen Instant “ScratchOff” games on sale simultaneously. Lotzee – This new game provided players an opportunity to pick 2. Instant Games – In a typical year. a player had to select a three/four-digit number. Most of these games had short lifecycles.

the state had asked bidders to submit a detailed proposal for the launch of a new type of Instant Scratch-Off game called Spades • Winning this account would enhance Graphica’s reputation and enable them to attract other big clients • Currently too much product clutter and one-point strategy of pushing new products
. sales of mature products had begun shrinking.Issues
• In recent years. promotional programs for dozens of games that are part of its lottery portfolio • Additionally.6% from 1997 to 1998 • NJ Lottery needed a company to implement the advertising. resulting in declines as much as 14. PR.

each ticket contains seven rows of five cards.000+) – Educated male – Lapsed and/or occasional instant player
. the target market for Spades is: – 25 to 44 years old – Higher income bracket ($40. The player can scratch one • and only one spot for each of the seven rows on the front of the ticket.Spades
Proposed Game Concept • Spades tickets cost $2. The number of Spades • revealed indicates the possible prize: – 4 spades = $1 – 5 spades = $5 – 6 spades = $25 – 7 spades = $100 Target Market • According to the RFP.

.000 • Very high frequency of game • Game life-cycle is very less
• No promotion done at all since 1997 • Odds to win 9.819 to 1 • Odds to win bottom prize 801 to 1 • Maximum top Prize is variable
• More focused promotion on instant tickets • the consumer perception that the payoff on instant tickets is high • Every ticket in Instant games could result in win.366.Reasons for Sales Cannibalisation
Pick-6 Lotto
Instant Tickets • Almost entire budget • 32% of lottery sales • Average top prize is only $30.

Media Plan
• Focuses on rebuilding the umbrella brand and be consistent with the umbrella branding strategy Reduce the cannibalisation of instant games and pick 6 lotto
– Invest in advertisement of Pick 6 Lotto – Change positioning of Pick 6 lotto from a traditional lottery to a new
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Distribute the media budget to various media instead of focusing on one. building awareness of a revitalized Lottery brand promoting individual games in a way that is aligned with Umbrella strategy to promote sales of Pick-6 Ticket Develop a model to engage the existing customer base
– Develop schemes and promotion targeting these customers
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Media Plan Contd.
• Adapt more modern methods of advertisements – Interactive website – Direct Mails to Consumer who opt for these – Focus more on Out-of-home promotion – Email & online advertisement
2000 1600 1200 800 400 0 1996 1997 1998 1999 Projected Non Media Production
Category Television Radio Television Out of Home Print Radio Media Production Out of Home Non Media Production Print Others Media Production Total
1999 Projected 600 400 1200 200 200 800 300 3700
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